Causes Of The Great Depression Essay
Leah Fraley Tuesday, May 12, 2015
Causes of the Great Depression
What caused the Great depression? Many think that the Wall Street Crash on Black Tuesday caused it, but there were many other things that lead to economic depression and massive unemployment. In the 1920s America was booming with lively hood and as it went though many changes. People looked for ways to get rich quick, this included buying stocks. Investors would sink their money into get rich schemes. One of the schemes, called Ponzi's Famous Scheme was created by Charles Ponzi, an Italian immigrant. He was set up with a company that included around 10,000 investors. Ponzi guaranteed investors that he could return 50% of their money inside a 90 days frame. …show more content…
There were several mini-crashes prior to the Wall Street Crash, including one in March of 1929. It improved only to see another crash in September. Then on October 29th the US stock market completely crashed, an event that not only altered America, but also the world. Massive numbers of people rushed to the banks to sell their stocks and receive what profit they could. Stocks were going down by 11% of its value, and within two days, the stocks lost a total of $30 billion dollars. This panic lasted for 5 days. By the end of 1930, America had fallen into the Great …show more content…
Too many goods were being produced. Agriculturally, farmers were growing and harvesting more food then the American population could ever consume. It was easy to overproduce crops because of new mechanized machines that had been invented in the 1920s. Because there was so much of one crop being produced there was less demand and the prices dropped. Farmers that had bought equipment on credit would not be able to pay, and have to forclose their farm. On the industrial side, many inventions were created in the 1920s, these products included, the automobile, electric iron, refrigerator, television, and consumer products. Production of these products and others like it was booming. The employed people working in the industries that manufactured the goods couldn't even buy the products because it was too
Causes of the Great Depression
What caused the Great depression? Many think that the Wall Street Crash on Black Tuesday caused it, but there were many other things that lead to economic depression and massive unemployment. In the 1920s America was booming with lively hood and as it went though many changes. People looked for ways to get rich quick, this included buying stocks. Investors would sink their money into get rich schemes. One of the schemes, called Ponzi's Famous Scheme was created by Charles Ponzi, an Italian immigrant. He was set up with a company that included around 10,000 investors. Ponzi guaranteed investors that he could return 50% of their money inside a 90 days frame. …show more content…
There were several mini-crashes prior to the Wall Street Crash, including one in March of 1929. It improved only to see another crash in September. Then on October 29th the US stock market completely crashed, an event that not only altered America, but also the world. Massive numbers of people rushed to the banks to sell their stocks and receive what profit they could. Stocks were going down by 11% of its value, and within two days, the stocks lost a total of $30 billion dollars. This panic lasted for 5 days. By the end of 1930, America had fallen into the Great …show more content…
Too many goods were being produced. Agriculturally, farmers were growing and harvesting more food then the American population could ever consume. It was easy to overproduce crops because of new mechanized machines that had been invented in the 1920s. Because there was so much of one crop being produced there was less demand and the prices dropped. Farmers that had bought equipment on credit would not be able to pay, and have to forclose their farm. On the industrial side, many inventions were created in the 1920s, these products included, the automobile, electric iron, refrigerator, television, and consumer products. Production of these products and others like it was booming. The employed people working in the industries that manufactured the goods couldn't even buy the products because it was too